CONSIDERING COSTS I In answer to Richard Diment's letter (CM
8th December 1988, Page 63
8th December 1988
Page 63
Page 63, 8th December 1988
— CONSIDERING COSTS I In answer to Richard Diment's letter (CM
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24 November), transport costs average some 5-10% of firm's total production costs and most of that percentage is in the form of terminal costs, (loading and storage, etc) which new roads don't change. Nor do new roads guarantee reduced trunking costs, particularly Oven the way congestion expands to fill extra road space.
So, when firms decide where they're going to locate, transport isn't one of the main things they consider — costs of land, labour and capital are much more important. If 5% isn't marginal, what is?
Steven Joseph, Executive director, Transport 2000, London NW1.
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